Kalyani Cast-Tech H1 profit falls as costs rise despite sales rebound

Kalyani Cast-Tech Limited reported consolidated profit after tax of Rs 7.00 crore for the half-year ended 30 September 2026, down from Rs 9.59 crore a year earlier, although revenue from operations rose sequentially to Rs 68.04 crore from Rs 57.55 crore as total expenses increased to Rs 58.56 crore.

Why did Kalyani Cast-Tech’s H1 profit decline?

Kalyani Cast-Tech’s profit declined because total income remained below the prior-year period while costs increased in several categories. Profit after tax was Rs 7.00 crore in the half-year ended 30 September 2026, compared with Rs 9.59 crore in the half-year ended 30 September 2025 and Rs 7.49 crore in the half-year ended 31 March 2026. Profit before tax fell to Rs 9.54 crore from Rs 12.74 crore a year earlier.

The company did record a sequential sales increase. Revenue from operations rose by Rs 10.49 crore from Rs 57.55 crore in the half-year ended 31 March 2026 to Rs 68.04 crore in the September 2026 half-year. However, it remained below Rs 92.40 crore reported in the corresponding 2025 half-year, while other income fell to Rs 6.73 lakh from Rs 1.85 crore a year earlier.

Basic and diluted earnings per equity share were Rs 9.73 for the September 2026 half-year, compared with Rs 10.44 in the preceding half-year and Rs 13.35 a year earlier. The consolidated results include KMT Engineering Private Limited, a 70% owned subsidiary; the auditor reported the group’s share of its revenue at Rs 1.26 crore and its loss after tax at Rs 2.87 lakh for the six months.

How did Kalyani Cast-Tech’s costs change in H1?

Kalyani Cast-Tech’s total expenses rose sequentially by Rs 10.70 crore to Rs 58.56 crore in the September 2026 half-year, slightly exceeding the Rs 10.49 crore increase in revenue from operations. Material consumed rose to Rs 45.26 crore from Rs 31.86 crore, while manufacturing expenses increased to Rs 4.33 crore from Rs 3.52 crore.

Employee benefit expense fell sequentially to Rs 4.60 crore from Rs 6.89 crore, but was above Rs 2.12 crore in the half-year ended 30 September 2025. Other expenses increased to Rs 4.65 crore from Rs 2.07 crore in the March 2026 half-year and Rs 1.97 crore a year earlier. Depreciation and amortisation also rose to Rs 71.87 lakh, from Rs 59.80 lakh sequentially and Rs 54.56 lakh year on year.

Materials consumption was lower than the Rs 70.99 crore reported in the September 2025 half-year, in line with revenue being Rs 24.36 crore lower year on year. Yet employee costs, other expenses and depreciation were all above their prior-year levels, and financial costs increased to Rs 9.55 lakh from Rs 8.62 lakh. Tax expense was Rs 2.55 crore, including current tax of Rs 2.44 crore and deferred tax of Rs 11.81 lakh.

What changed in Kalyani Cast-Tech’s balance sheet?

Kalyani Cast-Tech’s consolidated balance sheet expanded to Rs 124.30 crore at 30 September 2026 from Rs 99.12 crore at 31 March 2026. Non-current assets rose to Rs 68.96 crore from Rs 48.88 crore, current assets increased to Rs 55.33 crore from Rs 50.24 crore, and total equity increased to Rs 97.90 crore from Rs 86.21 crore.

Capital work-in-progress increased by Rs 17.10 crore to Rs 37.58 crore at 30 September 2026, while property, plant and equipment rose to Rs 26.92 crore from Rs 22.82 crore. The consolidated cash flow statement recorded Rs 17.10 crore of cash outflow for capital work-in-progress and Rs 4.80 crore for purchases of property, plant and equipment during the half-year.

Trade receivables rose by Rs 9.88 crore to Rs 42.87 crore, while inventories declined by Rs 50.10 lakh to Rs 4.52 crore. Other current assets increased to Rs 6.26 crore from Rs 4.46 crore. The cash flow statement recorded the receivables movement as a Rs 9.88 crore working-capital outflow.

Short-term borrowings increased to Rs 7.84 crore at 30 September 2026 from Rs 57.77 lakh at 31 March 2026, and long-term borrowings stood at Rs 22.69 lakh compared with nil at year-end. Trade payables to creditors other than micro and small enterprises increased to Rs 10.60 crore from Rs 2.98 crore. The notes state that management was still identifying parties covered under micro, small and medium enterprises, with disclosures made to the extent identified.

How did expansion affect Kalyani Cast-Tech’s cash flow and funding?

Kalyani Cast-Tech’s cash and cash equivalents fell to Rs 11.63 lakh at 30 September 2026 from Rs 5.10 crore at 31 March 2026 because investment outflows exceeded operating cash generation. Net cash from operating activities was Rs 1.80 crore, while net cash used in investing activities was Rs 18.88 crore. Net financing inflow of Rs 12.09 crore only partly offset those movements.

Operating cash flow was reduced by a Rs 7.19 crore adverse net change in working capital. The Rs 9.88 crore rise in receivables and a Rs 1.80 crore increase in other current assets were partly offset by a Rs 7.78 crore increase in trade payables. Cash flow from operations before direct tax was Rs 3.16 crore, and direct tax paid was Rs 1.36 crore.

Financing inflows included Rs 4.70 crore from the allotment of warrants, Rs 7.26 crore from the change in short-term borrowings and Rs 22.69 lakh from long-term debt, offset by Rs 9.55 lakh of interest paid. Kalyani Cast-Tech allotted 323,123 warrants on 23 September 2026 at Rs 582 each on a preferential basis and received 25% of the issue price upfront. Each warrant may convert into one equity share after payment of the remaining 75% under the stated terms.

Conclusion

Kalyani Cast-Tech’s September 2026 half-year combined a sequential recovery in revenue with lower profit than both the preceding and prior-year half-years. The figures show that a Rs 10.49 crore sequential revenue increase was accompanied by a Rs 10.70 crore rise in expenses, while expansion-related investment and working-capital movements reduced cash and cash equivalents to Rs 11.63 lakh.

The disclosed matters to watch next are the deployment of Rs 37.58 crore of capital work-in-progress, collection of Rs 42.87 crore of trade receivables and any warrant conversions following payment of the remaining 75% of the Rs 582 issue price. Management’s continuing identification of micro, small and medium enterprise parties is also an unresolved disclosure matter in the results.